Buy-to-let consumers need to know more about the costs of buying

More people than ever before are now looking to get themselves onto the ladder, but not to live in the homes that they are purchasing.

The buy-to-let sector is without doubt the strongest arm of the UK property market at the current time, and this has meant that people are looking to get themselves a slice of the pie, buying homes to rent out and earn a decent income.

Recently, the Royal Institute of Chartered Surveyors (Rics) called for the mandatory regulation of lettings agents so that all landlord insurance customers know that they are being charged the correct fees and can be safe in the knowledge that their representatives are treating them fairly.

At the same time, the Advertising Standards Authority (ASA) asked for a change in law that would mean tenants and landlords alike are informed of all costs from agents up front.

However, one expert has now gone on to say that, in addition to this, there should be more done to make certain that people purchasing through the buy-to-let sector are aware of all the costs that they are susceptible to.

Charlotte Leigh, who runs London-based property services company Howard Inventories, said that being aware of all costs is something that needs to become a priority.

"The buy-to-let sector is still growing and very much an important part of the overall property market in the UK. However, many buyers who have been inspired to enter the buy-to-let arena by media coverage of the opportunities this activity offers, are not always fully aware of the obligations they will also be taking on. Such obligations incur costs that must be included in calculations when budgeting."

Among the charges that people don't always know about are things like energy performance certificates, appliance testing, the fire proofing of any upholstered furnishings and inventories, all of which landlords are obligated to provide.

In addition to these, there are a great many things that landlords might not be aware they need to fork out when it comes to either purchasing or letting their new home.

For example, agency fees for letting can be costly at times, while they need to know about registering with tenancy deposit protection (TDP) schemes as well. Stamp duty will also need to be paid on any home costing more than £125,000, while insurance is a key consideration for landlords, who need cover against risks when their property is unoccupied, among other dangers.